By Rodrigo Manterola
Mexican insurance is required by law if you plan to enter and drive an American or Canadian car in Mexico.
Do you need a Mexican car insurance? Yes
Your AAA insurance it’s not enough, that insurance may cover your car and belongings but does not cover Mexican law, you need a Mexican registered insurance company to drive in Mexico.
Choosing the right insurance company that works in Mexico can be a hassle if you don’t know what you’re looking for, luckily we’re here to help!
When it comes to choosing the right insurance company you need to look for several factors and from there, if you feel comfortable with; make your move.
Read here about how to drive your car in Mexico, permits, etc.
How to choose an Insurance company in Mexico?
Look for reliability, good reviews, happy customers. If the company you found does not show what’s behind it why would you trust it? But there’s more to it.
Although choosing an agency is important in case you need assistance with a policy or claim, it may be more important to know how your insurance company works if you have a claim.
Make sure claims are paid in US/Canadian rates
No other feature of a Mexican car insurance is more important than how the insurance company will pay your claim. Some insurance companies may not pay a claim using U.S/Canadian rates and may pay you in Mexican pesos and/or at Mexican repair rates.
This could mean that you may be required to have your vehicle fixed in Mexico or they may pay you a fraction of the cost of repairing the vehicle in the U.S. and Canada.
This may be OK if you live in Mexico, but if you are a visitor and need to get home, this can be inconvenient. If you decide to leave and get your car fixed at home, you may end up paying up to 2/3 of the repair out of your pocket. I don’t know about you but that does not sound like full coverage to us.
Make sure you know how claims are paid
Claims must be paid in a similar fashion to that of the U.S. or Canada. Once the claim is filed, and the necessary paperwork submitted and reviewed. If the vehicle was damaged, a repair shop will be selected and the repair will begin. If the vehicle was stolen and not recovered within a certain period, the insurance company will either pay you if you are the registered owner and/or your lien holder
Best Mexican car insurance company
After reviewing all of the above it’s very clear that just a few companies cover all of these points; our favorite, Bajabound.com
The history behind this company is crystal clear and with an outstanding satisfaction rate of thousands of customers who entrusted Bajabound with more than just their vehicles; an insurance company provides security for sure but it also provides peace of mind, and that is priceless.
Yes we are definitely biased for Bajabound and yes, we make a small commission if you choose to buy a Mexican car insurance for your next trip to Mexico through any of the links provided here, but our bias is backed up by experience, not only ours but of many other drivers who can attest of this, and best of all, by using one of our affiliate links you don’t just get the best rate without paying any extra money, you also help us to keep providing free information for the thousands of drivers that, like you, have the need of this information. For that, thank you.
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